Why NQ Still Has Further to Fall

When we looked at the Nasdaq 100 (NQ) futures market last week, we identified a short term up channel on the daily time frame.

We saw that price was approaching the top of that channel, where we were expecting a bearish U-turn back down towards the bottom of the channel.

All of this was taking place within the longer term down channel that NQ has been stuck in for months, which is why we were looking for continued weakness.

Well, as expected, the NQ has turned lower and as of this writing has now traded lower in four of the last five sessions…

Looking for Selling Ideas

In the hourly chart of the NQ below, you can see how the market rose briefly above the top of the channel before falling back again…

Daily Chart of Nasdaq 100 (NQ) Futures — Source: TradingView

The NQ one hour time frame pushed bullish towards the top of the channel.

If resistance holds, it is expected the market to push bearish towards the bottom of the channel.

Entry: Counter trend line break bearish in the sell zone below the top of the channel.

STOP: In the buy zone above the entry.

LIMIT: 10,796.75

Once or if the one hour time frame gives the entry, and as long as the market stays in the sell zone, it will be a good idea to turn to the five minute time frame and look for Tunnel Trader, Destination Trader or Chandelier Trader short ideas towards the one hour price target.

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Keep on trading,

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Josh Martinez

Josh Martinez

Josh Martinez is an elite Analyst who’s been actively trading the financial markets since 2011. He’s known as one the leading innovative traders in this industry due to his his cutting-edge strategies.

Josh first burst into the scene when he took an initial deposit investment of $500 and turned into over $39,000 in just under 2 years.
Josh’s trading articles have been featured in Your Trading Edge, The FX Street, Trader Planet, Forex Crunch, Trading Pub, and Equities.com.

In addition to trading, Joshua has also trained thousands of traders worldwide. His strategies and systems have helped others find success in the market

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